Warehouse Lenders Boost Flagship’s Funding Facility

Flagship Credit Acceptance’s warehouse lenders bumped up and extended its credit line last month, according to a Kroll Bond Rating Agency presale report released last week. The five financial institutions backing the funding facility increased its capacity by 12.5% — to $900 million — through October 2020. Flagship has approximately 90% capacity remaining on the […]

Alt-Data Helps Lenders Overcome Underwriting Hurdles

LAS VEGAS — Lenders are making alternative data a more integral part of the underwriting process. In the subprime sector, alternative data can paint a clearer picture and better assist lenders in assuming comfortable risk levels. “The more information you can have, the better a decision you can make and potentially price loans the right […]

Interest Rates Will Weigh Down Auto Sector Despite Strong Consumer Sentiment [VIDEO]

Comerica Bank’s Chief Economist and SVP Robert Dye expects that the U.S. economy could be headed for a “fiscal cliff” next year. Despite a somewhat confident consumer segment, the weight of interest rates on the auto industry will soon take effect. When it comes to consumers, “It is the best of times and the worst […]

Election Analysis: AFSA Examines the Midterm Results

The 2016 midterm elections are history and we now know that the House of Representatives will shift control to the Democrats, while the Senate will have a strengthened Republican majority. Of particular interest to AFSA members, Tuesday’s winners include the former chief of staff of the Presidential Task Force on the Auto Industry, a mortgage […]

California, Michigan Auto Sales to Decline as Debt-Strapped Customers Curb Purchases, Economist Says

LAS VEGAS —  Economic weaknesses in Michigan and California may dampen auto sales and financing volume, said Robert Dye, senior vice president, and chief economist at Comerica Bank. “On a regional basis, we’re seeing weakness in the Midwest, and we’re also seeing weakness in the West, so there’s an affordability issue,” Dye said in a […]

Why Penetration Rates Are Dropping at Hyundai Capital, NMAC

LAS VEGAS — Hyundai Capital America expects rising interest rates to squeeze penetration ratios to 40% or 50% by yearend across all its franchise brands, Chief Executive Ross Williams said during a fireside chat at the Auto Finance Summit. Historically, the captive’s penetration rate has hovered around 70%, Williams said. However, the rising interest rate […]

Subprime Issuers Gain Share of ABS Market

NEW YORK — Though subprime originations have declined, “a greater share of these originations are making their way into the securitization market,” Amy Martin, senior director of structured finance ratings at S&P Global Ratings, said during the agency’s Auto Industry Hot Topics event last month. With banks reducing their loan volume, independent finance companies have […]
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